PHILADELPHIA (CBS) – Gas prices continue to surge and it looks like there’s no end in sight.
The US Energy Information Administration is predicting that we’ll be paying more than $3.50 for a gallon of gas this summer and perhaps even four bucks by September.
Analysts say most of the demand is being driven by speculators betting on higher prices as the economy continues to improve.
There’s been the usual grumbling from consumers, but no organized outrage.
Dr. Richard Michelfelder, an associate professor of finance at Rutgers-Camden, says that may be due to the fact that this run-up seems to have snuck up on us.
“The last time it was a shock because it was very quick. It went from a $1.50 a gallon to $2.50 to $3.50 very quickly, where as this time it’s been much slower,” Michelfelder explained.
Gasoline isn’t the only commodity. As crude oil prices continue to rise, Michelfelder says inflation becomes a concern.
Reported By: Paul Kurtz, KYW Newsradio